Eligibility criterion and Documents needed for a car loan

Want to buy a car? Most of the banks offer a car loan to the people at a fixed interest rate. You can pay back the loan amount to the bank in easy instalments. As per the car loan rules and policies of the bank, you can apply for the loan, submit documents required for car loan, and calculate your EMI amount.

Before geting started, check whether you are eligible to get a car loan. It is also to have all the documents that are needed by the bank to process the loan. So, here we brief you the eligibility criterion and the list of documents needed to take the loan.

Eligibility Criteria and Documents Required

Though the car loan eligibility criteria can be different for different banks, most of the standard criteria include the following:

  • The age of the applicant has to be a minimum of 18 years and a maximum of 75 years.
  • The minimum income should be around Rs. 20,000.
  • The applicant should have at least one year of employment with the current employer.
  • The loan applicant must be salaried or should be self-employed. The applicant can also be a government servant or an employee of the private company.

There are car loan documents too, to prove that the above conditions are true, and you are eligible to get a loan from the bank. The document list is also specific to the banks. However, common documents will include:

Identity proof

The ID proofs are crucial documents required for auto loan. You can render one of the following documents to the bank:

  • Aadhaar card
  • Your current and valid passport
  • A valid driving license or DL
  • Voters ID card
  • PAN card

Address proof

Address proofs are other documents needed for car loan the bank needs. You can render one of the following documents to the bank, that contains your current address:

  • Aadhaar card
  • A valid Passport
  • Driving license or DL
  • Ration card
  • Utility bills

Proof of income

One of the essential criteria to get car finance from the bank is that you should be earning some income. To support this, the bank asks you to present the following proofs of income:

  • Form 16
  • Salary slips, in case you are a salaried employee of a company
  • Latest ITR or Income Tax Returns documents
  • Bank statements of the past six months

Other than the car loan documents checklist mentioned above, the bank may also ask you for other papers too. Check with the lenders what documents they are looking for car loan finance. The list of documents may also vary with the situation and the latest conditions. If you are looking for the used car loan, the documents required are mostly the same as above.

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